After months of slow sales and rabid speculation Sony officially dropped the hammer on the 20GB version of the PS3 yesterday, announcing that they will no longer offer it in North America.
This news comes as absolutely no surprise to me as I predicted a year ago that Sony would eventually move to a single SKU. The only reason they ever released the smaller 20 GB model was to demonstrate that they were offering a "choice" like Microsoft had with two different versions of the Xbox 360. However, when the two models and their respective features were announced, it was clear to me the little brother would get its ass kicked by its bigger brother. Sony didn't really offer a choice to consumers at all. They made sure the 20GB version was crippled enough to ensure consumers would have no good justification for passing up on the $600 version. Funny thing is, the speculation of this move started a few weeks ago when JOystiq revealed an internal Best Buy document showing the 20GB PS3 as "discontinued" but I've never ever seen a 20GB PS3 in my local Best Buy stores since the launch; and I live in Minneapolis, where Best Buy is headquartered. So, either Best Buy saw the writing on the wall, or they did the writing themselves by simply not ordering 20GB machines from Sony. Seeing as the profit margin is larger on the 60GB version, this would not be at all surprising.
This news comes just weeks after Microsoft introduced a third SKU for their Xbox 360 with the announcement of the Xbox 360 Elite with a 120GB hard drive and HDMI outputs. One company says they offer consumers choices, and one actually does offer choices.
Microsoft says they have no intention of discontinuing the no-hard-drive Core Xbox 360, but you have to wonder how long they'll stick to that story now.
Sony has had a rough time of it so far with the PS3, but analysts don't think the discontinuation of the 20GB model is any reason to be pessimistic about the PS3's future. So far they all say it's about games, and eventually Sony will have some compelling games. When? I'm looking down the road and I don't see anything compelling before 2008 that I can't get on Xbox 360. Am I missing something?
So, do you think the nixxing of the 20GB PS3 is another sign of trouble for Sony or simply a shrewd business decision?
FYI, if you are really desperate for a 20GB PS3, you can always import one from Japan as they will still be sold in the Land of the Rising Sun.
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